500 M Dollars Fraud BlackRock Accuses Indian Origin CEO of Massive Scam

World

Updated on Nov - 01 - 2025, 04:36 AM

In a dramatic case of alleged financial deception, the global investment firm BlackRock via its private-credit arm has accused Indian-origin CEO Bankim Brahmbhatt of orchestrating what it describes as a “breathtaking fraud” totalling more than US 500 million dollars. The allegations centre on Brahmbhatt’s U.S.-based telecom companies (including Broadband Telecom and BridgeVoice), which lenders say falsely inflated accounts-receivable and used them as collateral. 

In September 2020, BlackRock’s affiliated lender HPS began investing in a financing arm tied to Brahmbhatt’s telecom operations. Lending initially stood at about $385 million in early 2021 and rose to approximately 430 million by August 2024. But in July, HPS flagged irregularities: email addresses supporting the “receivables” appeared to originate from fake domains mimicking real telecom customers. When questioned, Brahmbhatt allegedly replied that all was well then vanished, no longer answering calls or meeting in person. 

A personal visit to the New York offices of the companies reportedly revealed shuttered facilities and no senior executives present. Meanwhile, lenders allege assets pledged as collateral were transferred offshore to India and Mauritius rendering the “collateral” illusory. When journalists visited Brahmbhatt’s listed residence in Garden City, they found luxury cars parked, but no one answered the door; his whereabouts remain unclear. 

Brahmbhatt denies the accusations, according to his lawyer, but the mounting lawsuits identify a web of alleged deceit. Fraud experts say this case underscores how complex corporate structures, stretched across borders, can hide egregious behaviour and that big-name investors are not immune.

For BlackRock and its lenders, the loss is not merely financial but reputational: trusting a seasoned CEO, backed by large capital, only to have the entire foundation alleged to be a house of cards. For regulators and investors globally, the episode raises red flags about due-diligence, cross-border asset tracing, and the integrity of valuation models for collateral.

In short, this may not just be a large fraud it could also be a signal of more to come in a globalised finance world where complexity and opacity sometimes mask serious risks.